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Municipal fiber network in the  Netherlands  Three different legal approaches   : Prof. dr J.M. Smits LL.M. Date       : O...
2            This image was posted by photographer Daniela DuncanOctober 24, 2011   IBBT Gent
The Development of MunicipalNetworks in the NetherlandsOctober 24, 20113                  IBBT Gent
The Development of MunicipalNetworks in the Netherlands (2)                   OECD Fixed (wired) broadband subscriptions p...
The Development of MunicipalNetworks in the Netherlands (2)                Percentage of fibre connections in total broadb...
General legal environment                                                    6• Respective regulatory Telecom packages sin...
Region: Four municipalities                                                          7                               Incum...
8   Licensed/incumbent operatorsOctober 24, 2011   IBBT Gent
Nuenen                                                        9• FttH Nuenen saved a national subsidised programcalled Ken...
Nuenen                                                            10• OnsNet Nuenen is a coöperation• Every one with a sub...
Geldrop Mierlo                                                        11• Contract signed February 2007 between municipali...
12 Public parties: muncipality & social housing organisationsOctober 24, 2011   IBBT Gent
Eindhoven                                                                            13 • 22 september 2003 city council a...
14Services of General Economic InterestOctober 24, 2011   IBBT Gent
HeezeLeende                                                                      15• SGEI are based upon Article 14 and 10...
HeezeLeende                                                                       16• Started end 2008 beginning of 2009• ...
17State Aid & MEIPOctober 24, 2011   IBBT Gent
State Aid                                                                                               18   • 83 deciscio...
Market Economy Investor Principle                                                                     19• Citynet Amsterda...
20ConclusionsOctober 24, 2011   IBBT Gent
FttH: Local recognition                                                   21       • Public telecom networks are essential...
Incumbents                                               22 • Take all the advantages the liberalised market has given the...
23Questions pleaseOctober 24, 2011   IBBT Gent
ContactOctober 24, 2011   IBBT Gent
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Jan Smits Tech Univ of Eindhoven,Ghent 24 Oct 2011

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Transcript of "Jan Smits Tech Univ of Eindhoven,Ghent 24 Oct 2011"

  1. 1. Municipal fiber network in the Netherlands Three different legal approaches : Prof. dr J.M. Smits LL.M. Date : October 24, 2011Location : Gent, Belgium.
  2. 2. 2 This image was posted by photographer Daniela DuncanOctober 24, 2011 IBBT Gent
  3. 3. The Development of MunicipalNetworks in the NetherlandsOctober 24, 20113 IBBT Gent
  4. 4. The Development of MunicipalNetworks in the Netherlands (2) OECD Fixed (wired) broadband subscriptions per 100 inhabitants, by technology, December 2010 40 Other Fibre/LAN Cable DSL 35 30 OECD average 25 20 15 10 5 0 Source: OECD From 0.4% 1,1% The NetherlandsOctober 24, 20114 IBBT Gent
  5. 5. The Development of MunicipalNetworks in the Netherlands (2) Percentage of fibre connections in total broadband subscriptions, Dec. 2010 Japan Korea Slovak Republic Sweden Norway Denmark Hungary Czech Republic Iceland Portugal Netherlands Turkey 2.8% Italy Poland Finland Switzerland France Ireland Spain Luxembourg Austria Australia Germany Canada New Zealand Greece Belgium 0% 10% 20% 30% 40% 50% 60% 70%October 24, 20115 IBBT Gent
  6. 6. General legal environment 6• Respective regulatory Telecom packages since 1993 allowed for license free market for establishing electronic communication networks• Services of General Economic Interest• State Aid (EU approval, in forms such as recent French scheme (white areas) or Citynet Amsterdam (market economy investor principle)October 24, 2011 IBBT Gent
  7. 7. Region: Four municipalities 7 Incumbent approach Public party approach SGEI approachOctober 24, 2011 IBBT Gent
  8. 8. 8 Licensed/incumbent operatorsOctober 24, 2011 IBBT Gent
  9. 9. Nuenen 9• FttH Nuenen saved a national subsidised programcalled Kenniswijk (2000-2002)• Very effective community marketing• Cooporative property by all inhabitants of Nuenen(OnsNetNuenen)• Network operator has/had essential control• FttH networks play important role in perceived feelingof social well being• Now well under (indirect) control of Reggefiber/KPNOctober 24, 2011 IBBT Gent IBBT Gent
  10. 10. Nuenen 10• OnsNet Nuenen is a coöperation• Every one with a subscription on a service of OnsNet Nuenen is automatically member of the coöperation• Owner and exploiter of Fiber Optic Network is Netwerk Exploitatie Maatschappij Nuenen (NEM Nuenen BV), a ltd in which members of van OnsNet Nuenen hold shares• NEM concludes contracts with service providers, enabling the direct delivery of services over the fiber optic networkOctober 24, 2011 IBBT Gent
  11. 11. Geldrop Mierlo 11• Contract signed February 2007 between municipality and NEM Brabant (subsidiary of Reggefiber)• Then a period of intensive local marketing is done, also through opening a special (sign up-) store• May 2007 18000 homes passed appr. 10.000 homes connected• September 2008 ready for operation• Three service providers: KPN Glasvezel, OnsBrabantNet, Xs4allOctober 24, 2011 IBBT Gent
  12. 12. 12 Public parties: muncipality & social housing organisationsOctober 24, 2011 IBBT Gent
  13. 13. Eindhoven 13 • 22 september 2003 city council approved ‘Glasrijk Eindhoven’ with the intention in 2010 the whole of Eindhoven (ca. 100.000 woningen) connected to a fibre optic network • 1 july 2004 Gemeente Eindhoven & 5 Social housing organisations signed a declaration of intent to connect within a year 6.000 houses • These social housing organisations established NEMe (Network Exploitation Society Eindhoven) • five housing org established a separate legal entity: Lichtrijk BV to be able to participate for 20% in an entity that took care of financing NEMe • March 2007 a new entity was created Lichtrijk Beheer BV, gathering the 20% stakes of each of the social housing org, after a merger 3x30% and one 10% • Half 2007 50% of the shares were acquired by Reggefiber. • Now (2011) the social housing corporations want outOctober 24, 2011 IBBT Gent IBBT Gent
  14. 14. 14Services of General Economic InterestOctober 24, 2011 IBBT Gent
  15. 15. HeezeLeende 15• SGEI are based upon Article 14 and 106(2) TFEU• As a consequence of standing ECJ jurisprudence it is attributed legal power to all public regulatory entities• It can take the form of a contract, Service Level Agreement, formal local law, etc.• It allows the formulation of rights and obligations for operators – Public procurement; – Technological neutrality; – Open access (legal, technical and functional); – Input existing infrastructure; – Minimal use of public funding; – Universal service.October 24, 2011 IBBT Gent
  16. 16. HeezeLeende 16• Started end 2008 beginning of 2009• Ownership of the physical network: Foundation• Cooperative arrangement for the responsibilities of exploiting the network• They worked out a nice scheme for constructing the network, through a commercial loan guaranteed by the municipality, inputs from idivduals as well as companies• Pre selected (after procurement) party for network/services operation (in the proces bought by Reggefiber)October 24, 2011 IBBT Gent
  17. 17. 17State Aid & MEIPOctober 24, 2011 IBBT Gent
  18. 18. State Aid 18 • 83 deciscions (july 2011) • http://ec.europa.eu/competition/sectors/telecommunications/broadband_decisions.pdfOctober 24, 2011 IBBT Gent
  19. 19. Market Economy Investor Principle 19• Citynet Amsterdam Decision 23 C 53 / 2006 (ex N 262 / 2005) – Citynet Amsterdam – NL NL 20/12/2006October 24, 2011 IBBT Gent
  20. 20. 20ConclusionsOctober 24, 2011 IBBT Gent
  21. 21. FttH: Local recognition 21 • Public telecom networks are essential in the general interest • Necessary: Leagal separation of electronic communication networks -services • Exploitation of networks has many real estate characteristics • Innovation means more living comfort & quality of liveOctober 24, 2011 IBBT Gent
  22. 22. Incumbents 22 • Take all the advantages the liberalised market has given them • They dictate speed of investment • They deny positive businesscase • Regulators and enforcement agencies limit their control by the sole application of (general) competion lawOctober 24, 2011 IBBT Gent
  23. 23. 23Questions pleaseOctober 24, 2011 IBBT Gent
  24. 24. ContactOctober 24, 2011 IBBT Gent
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